Thousands of disability support pensioners could be forced off the payment under proposals before the federal government.

Instead, they could be moved onto a new working-age welfare payment that recognises their ability to work.

The recommendation is in a draft review of the welfare system to be released on Sunday by former charity boss Patrick McClure, according to reports.

It will outline a new payments system recognising people’s ability to work, with top-ups based on individual circumstances including work capacity, parental or carer responsibilities.

It will also suggest only those with a permanent impairment should be eligible for the disability support pension.

The review provides a blueprint for a social support system to be rolled out in the medium to long term.

Mr McClure’s final report is due in September.

Shadow treasurer Chris Bowen says Labor supports measures to help people on the disability support pension back into work where possible and appropriate.

“What we don’t support is cutting people’s benefits on disability support in some brutal and blunt effort to force them back into inappropriate jobs,” he told ABC on Sunday. “We won’t support that.”